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A travel class is a quality of accommodation on public transport. The accommodation could be a seat or a cabin for example. Higher travel classes are more comfortable and more expensive. Travel classes are a form of price discrimination. Airlines traditionally have three travel classes:

• First class, the highest quality of accommodation available
• Business class, high quality, traditionally purchased by business travellers
• Economy class (also known as coach or tourist class), basic accommodation, commonly purchased by leisure travellers

However, with premium travelers choosing private planes and businesses becoming more fare-sensitive, the classes have become blurred. Three-cabin aircraft are found only on premium transcontinental or international flights. For shorter distances, most airlines fly a two-cabin plane, featuring a downscaled first class which may be comparable to international business, to accompany economy. Some airlines merge their international first and business classes into a premium business product, whereas others either supplement or supplant the business cabin with a premium economy class. Some exceptionally long flights operated by Singapore Airlines offer only Business and Premium Economy class service.

But most notable, most low-cost carriers have eliminated their first and business class cabins entirely. The costs of extra services and amenities afforded to the premium cabins is eliminated, and more seats can be installed on an aircraft.

Fare class

Within each travel class there are often different fare classes, relating to ticket or reservation restrictions and used to enhance opportunities for price discrimination. Passengers within the same travel class receive the same quality of accommodation and may indeed sit next to each other; however, the price or restrictions they face for that accommodation will vary depending on the fare class. For example, full fare economy class passengers (booking code Y) are usually able to make changes to their reservation, while discount economy class passengers in the lowest booking code usually have tickets that are non-refundable, non-upgradeable, non-transferable, or non-changeable without a hefty fee.

Airline fare classes are commonly indicated by letter codes, but the exact hierarchy and terms of these booking codes vary greatly from carrier to carrier.

First class codes

• A, F, P, R, Z

On domestic flights, F commonly indicates first class on a two-cabin plane. If a three-cabin aircraft is used, P (for "premium") may be used to distinguish the higher level of service in first class. The R code indicated supersonic transport and is no longer used with the retirement of the Concorde. The A and Z codes may indicate a first class ticket whose fare is reduced due to restrictions on refunds, advance reservation requirements, or other terms.

Business class codes

• C, J, D, I

On many airlines, C or J indicate full fare business class, whereas discounted and thus restricted and un-upgradeable fares are represented by D or I.

Economy class codes

• Full fare: Y, B, H, M
• Special or discount fares: K, Q, L, G, O, U, S, T, V, W

In most airlines, a full fare, unrestricted economy ticket is booked as a Y fare. Full fare tickets with restrictions on travel dates, refunds, or advance reservations are commonly classed as B, H, or M, although some airlines may use S, W, or others. Heavily discounted fares, commonly T or W, not only will not permit cabin upgrades, refunds, or reservation changes, but may require Internet booking, not credit miles or elite status credit in a frequent flyer program, or impose many other restrictions. Other fare codes are restricted for use by consolidators, group charters, or travel industry professionals.

Most low-cost carriers have greatly simplified the fare classes they use to a handful of cases, unlike the dozens employed by a traditional airline. While some traditional carriers have followed, others continue to prefer price discrimination over commoditization.